HLB Caribbean Tax Updates

06 Feb 2018
HLB Caribbean Tax Updates

 

Puerto Rico

HLB is represented by LLM&D PSC who since 2001 has been devoted to providing unique, specialised services to the business community in the areas of accounting, assurance, tax, financial consulting, and other non-traditional business advisory services. 
 
Puerto Rico Waives Obligation to File Quarterly Sales and Use Tax Report for Period Ended December 31, 2017
 
Puerto Rico has waived the obligation to file a quarterly sales and use tax report required for non-withholding agents for the 3-month period ending on December 31, 2017.  The tax report was due to be filed on January 31, 2018.

Similarly, the requirement to file the 2017 annual report, required under section 4041.03(b)(1)(C) of the Code to be filed on or before January 31, 2018 was  also waived.

Nonetheless, non-withholding agents are still obligated to notify local purchasers of their obligation to remit the sales and use tax on tangible personal property acquired from non-withholding agent merchants.
 
For more information on doing business in Puerto Rico, please contact Carlos Dolagaray at LLM&D PSC on This email address is being protected from spambots. You need JavaScript enabled to view it. or (787) 777-0660.
 
 
Trinidad and Tobago

HLB is represented in Trinidad and Tobago by HLB Montgomery & Co, whose corporate experience and in-depth knowledge encompasses the following client base: Manufacturing, Marketing, Foreign corporate reporting to their head office, Retailing, Trinidad & Tobago Government Health Sector, Credit Unions, Information Technology, the Hotel Industry, Construction, Down Stream Oil Industry, Insurance Agents and Receiverships & Liquidations.

Revenue Authority Created in Trinidad and Tobago
 
The Ministry of Finance issued a press release announcing the establishment of the Trinidad and Tobago Revenue Authority (“TTRA”).  The TTRA will be the government agency responsible for the collection of government revenue and the provision of other services for the protection of such revenue which includes investigation of tax evasion, conducting tax audits and border protection.

The TTRA will subsume the powers, responsibilities and functions of the Board of Inland Revenue and the Customs and Excise Division.


 
Trinidad and Tobago On Board with OECD BEPS Initiative
Trinidad and Tobago has become the 108th member to join the Inclusive Framework ("IF") for the global implementation of the Base Erosion and Profit Shifting (BEPS) Project.  Under this framework, all state and non-state jurisdictions that commit to the BEPS Project will participate as BEPS Associates of the OECD's Committee on Fiscal Affairs.

For more information on doing business in Trinidad & Tobago, contact Almida Anderson at HLB Montgomery & Co on This email address is being protected from spambots. You need JavaScript enabled to view it.or +1 868 623 4573
 
 
Dominican Republic

HLB is represented in the Dominican Republic by HLB Santo Domingo D. R. Auditores & Consultores, who provide audit, consulting, outsourcing and taxation services.
 
Under Anti-Money Laundering Law, Dominican Republic Calls for Mandatory Registration of Certain Taxpayers
TPursuant to Anti-Money Laundering Law No. 155-17, the Dominican Republic is requiring "mandatory taxpayers" (sujetos obligados) to register with the Financial Analysis Unit (Unidad de Análisis Financiero).

"Mandatory taxpayers" are defined to include:

•    lawyers;
•    notaries;
•    accountants;
•    real estate agents and companies;
•    gambling houses;
•    car dealers; and
•    jewelery and art dealers.

Legal entities must register via a designated liaison for the Competent Authorities in matters of Prevention of Money Laundering ("Compliance Officer" in the terms of the Law).  Individuals must personally register. 

Registration can take place online via the UAF website .
 
Dominican Republic Seeks Identification of Final Beneficiaries
As part of the Dominican Republic’s newly enacted law on anti-money laundering (the “AML”), all companies—including entities such as trusts and mutual funds—are required to identify final beneficiaries in accordance with the provisions of article 50(c) of the Tax Code.

The following forms will be available for such purposes: 

•    An updated Affidavit for Registration and Update of Data of Legal Persons (Form RC-02), which includes Annex D (Affidavit for the Identification of the Final Beneficiary) that must be completed by the taxpayers at the time of incorporation or modification of the data;

•    Form of Affidavit of Registration and Update of Separate Assets (RC-03), which is a new form that will be used for the incorporation and modification of data of trusts, mutual funds, collective investment schemes or similar arrangements, and which includes mandatory Annex C (Affidavit for the Identification of the Final Beneficiary);

•    Updated Corporate Income Tax Filing (IR-2 form), which, for fiscal years ending on or after September 30, 2017, includes mandatory schedules H-1 (Identification of the Final Beneficiary) and H-2 (Data Update); and

•    Updated Not-for-Profit Income Tax Filing Informative Statement (ISFL form), which includes mandatory Schedule C (Identification of Members and Final Beneficiary for Not-For-Profit Institutions) that must be completed by the taxpayers at the time of annual tax filing.

This requirement is effective September 21, 2017.

 
Dominican Republic Sets 2018 Transfer Pricing Threshold 
 
The Dominican tax authorities released Notice No. 5 of 2018, which adjusts the 2018 transfer pricing reporting threshold to DOP 11,015,961. Taxpayers not reaching the threshold do not have transfer pricing reporting obligations for the year 2018.
 
Dominican Republic Updates List of “Tax Havens”
 
The Dominican Republic has published an updated list of countries or territories that will not be considered preferential tax regimes, low- or zero-taxation regimes, or tax havens.  This list includes the following countries:

•    Panama;
•    Antigua and Barbuda;
•    Austria;
•    Dominica;
•    Hong Kong;
•    Luxembourg;
•    Monaco;
•    Cook Islands;
•    Niue Island;
•    Micronesia;
•    Netherlands;
•    Saint Martin; and
•    Seychelles.

Tax residents conducting bona fide commercial or financial transactions with individuals, legal entities or entities resident in the above countries or territories will only be subject to transfer pricing obligations if they are considered related parties under domestic tax law.

For more information on doing business in the Dominican Republic, contact Luis Quezada at HLB Santo Domingo D. R. Auditores & Consultores on This email address is being protected from spambots. You need JavaScript enabled to view it. or +1 809 363 3973
 
Netherlands Antilles


 
HLB International is represented in Netherlands Antilles by HLB Jourdain & Partners in Curaçao, which are Tax Lawyers and Legal Consultants.
 
St. Maarten Publishes Tables for 2018 Tax Rates and Credits
 
 
Corporate income tax rate
 
The corporate income tax rate remains unchanged at 34.5%.
 
Individual Income and Wage Tax rates

 
Taxable income (ANG)Tax on lower amount (ANG)Rate (%) 
up to   31,837 0 12.50      
31,837 47,756 3,979.64 20.00      
47,756 66,328 7,163.33 26.25      
66,328 99,490 12,038.29 33.75      
98,490 140,612 23,230.57 40.00      
over   140,612 39,679.47 47.50      
 
 
 
Tax Credits 
 
The 2016 credits are as follows:
Type of allowanceAmount (ANG)
standard credit 2,072
single earners credit 1,383
child credit I(a)* 75
child credit II(b)* 94
child credit III(c)* 367
child credit IV(d)* 737
senior citizen credit 1,044
maximum transferable amount of senior citizen credit of spouse 524


Aruba Establishes Structure for International Tax Assistance
 
On December 19, 2017, Aruba published a State Ordinance on International Tax Assistance (“LIBB”), which is the framework for the local government to assist in international tax matters.  This established guidance is designed to be in accordance with Common Reporting Standard (“CRS”) of the Organisation for Economic Co-operation and Development (“OECD”).  

Further, Aruba intends to finalize an agreement with the U.S. regarding FATCA (Foreign Account Tax Compliance Act) compliance, pursuant to U.S. law.  This means that the government of Aruba, rather than financial institutions themselves, will have the responsibility to provide information regarding U.S. account holders in such institutions to the U.S. government. 

The LIBB is effective as of December 20, 2017.  


For more information on doing business in Netherlands Antilles, contact Michael Kaspers at This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Bahamas

 

 
HLB International is represented in The Bahamas by HLB Galanis & Co, which specialises in accounting, audit & assurance, business valuations, consulting services, corporate finance, corporate services, forensic accounting and litigation support and testimony. 
 
Bahamas Signs on for OECD Exchange of Information and BEPS Initiative

The Bahamas has joined the OECD Multilateral Competent Authority Agreement on Automatic Exchange of Information Agreement, which aims to implement the automatic exchange of financial account information pursuant to the OECD/G20 Common Reporting Standard (CRS), and to deliver the automatic exchange of CRS information between 101 jurisdictions by 2018. 

Further, the Bahamas has joined the inclusive framework for the global implementation of the Base Erosion and Profit Shifting (“BEPS”) Project.  Under this framework, all state and non-state jurisdictions that commit to the BEPS Project will participate as BEPS Associates of the OECD's Committee on Fiscal Affairs. 

For more information on doing business in Bahamas, contact Philip Galanis at HLB Galanis & Co on This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Jamaica

 

Jamaica: General Consumption Taxpayers Required to Electronically File GCT Tax Returns

The Jamaica Ministry of Finance and the Public Service issued a press release announcing that the tax administration will be implementing the next phase of its mandatory e-filing of tax returns. 

Effective April 1, 2018, small and micro businesses registered as general consumption tax (GCT) taxpayers will be required to e-file their GCT returns via the Jamaica Tax Portal, as is currently being done by large and medium taxpayers.


 
Sports Betting and Gaming Tax Fees Now to be Paid to Tax Administration Jamaica

Effective January 1, 2018, contributions normally paid to the CHASE fund must be paid to the Tax Administration Jamaica (“TAJ”).  The returns include the following contributions (now called fees):
 
License typeReturn formTax rate payable up to 31 Dec. 2017 (%)Contribution payable to CHASE Fund up to 31 Dec. 2017 (%)Tax rate payable to TAJ from 1 Jan. 2018 (%)
Bookmaker (sports betting)
 
BT06 7 1 8
Gaming GT01 6.5 1 7.5



For more information on doing business in Jamaica, contact Orville Christie at Boldeck Jamaica on This email address is being protected from spambots. You need JavaScript enabled to view it. or +1 876 754 0833
 
Martinique

Effective January 1, 2018 and as per Article 182-A of the General Tax Code (Code Général des Impôts), the rates of withholding tax on the employment income of and pensions paid to non-resident individuals is as follows:
 
Annual income 
(EUR)
Rate (%) 
up to 14,605     0      
14,605-42,370     12      
over 42,370     20      
 

Note: In the overseas departments (département d'outre-mer, DOMs) French Guiana, Guadeloupe, Martinique and Reunion, the rates are 8% and 14.4% (instead of 12% and 20%).


Martinique Issues Wage Withholding Table for Non-Residents

Effective January 1, 2018 and as per Article 182-A of the General Tax Code (Code Général des Impôts), the rates of withholding tax on the employment income of and pensions paid to non-resident individuals is as follows:
 
St. Kitts and Nevis

St. Kitts and Nevis Aligns with OECD Exchange of Information Requirements and BEPS Initiative

St. Kitts and Nevis has joined the OECD Multilateral Competent Authority Agreement on Automatic Exchange of Information Agreement, which aims to implement the automatic exchange of financial account information pursuant to the OECD/G20 Common Reporting Standard (CRS), and to deliver the automatic exchange of CRS information between 101 jurisdictions by 2018.

Further, St. Kitts and Nevis has joined the inclusive framework for the global implementation of the Base Erosion and Profit Shifting (“BEPS”) Project.  Under this framework, all state and non-state jurisdictions that commit to the BEPS Project will participate as BEPS Associates of the OECD's Committee on Fiscal Affairs. 



FATCA Agreement Signed Between U.S. and St. Kitts and Nevis 

On November 14, 2017, the U.S. Internal Revenue Service (“IRS”) announced a competent authority agreement (“CAA”) that the United States had entered into with St. Kitts and Nevis.  The Foreign Account Tax Compliance Act’s (FATCA) primary purpose is to overcome perceived tax abuse by U.S. persons utilizing offshore accounts, and rules require (1) foreign financial institutions to provide information to the IRS regarding U.S. account holders, and (2) other non-US entities to provide information about any U.S. owners.

 

 

 

 

 

 

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